In manufacturing a lenticular display system, precise alignment of the lenticular sheet on the LCD panel may not be practically achievable. Hence, observed view images inevitably produce unwanted distortion. We propose a novel method to alleviate the display distortion of each observed view image in a lenticular 3-D display. We first derive the relationship between subpixel values on the LCD pixel array and the image to be observed at each viewing zone in terms of system design parameters and the viewer's eye position. Based on this relationship, we analyze the distortion between the observed and original view images. We then derive a compensation algorithm to minimize the distortion and generate high-quality 3-D images. To verify the proposed scheme, we examine displayed results from several 3-D images of synthetic and real scenes. The results demonstrate that the proposed scheme significantly reduces distortions and improves the image quality in the lenticular display system.